India may soon ask Indonesia to reconsider restrictions
imposed on coal exports as Jakarta's move is hurting several Indian companies
which had planned power projects to be based on the fuel imported from the
Southeast Asian nation.
Indian Coal Secretary Alok Perti told reporters Tuesday that
the power producers had raised the matter with the finance ministry, which
along with the Ministry of External Affairs “may soon take it up with
Indonesia.”
Top Indian industrialists met Indian government officials
earlier this month with suggestions including bilateral talks with Indonesia to
remove restrictions on coal exports and other measures to boost growth in the
power sector, which is facing problems of a coal shortage and funding.
“Many Indian producers bought mines there [Indonesia]
thinking they will be owners of coal there and owners of power projects in
India,” Perti said. “But the restriction on export of some grades of
coal has led to an additional increase of at least $20-$22 per ton of
coal.”
Perti said Indonesia in September effected a law that
prohibits coal producers from selling the fuel, even to their affiliate
companies, below a reference price that is linked to international rates and
needs adjustments every year. The law has made coal imports from Indonesia
expensive.
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